Cubic Corp., the defense contractor that also makes fare-collection technology for mass transit, reported net income of $10.1 million, or 38 cents per diluted share, on sales of $366 million for the second quarter of its 2016 fiscal year. The quarter ended March 31 and the company released its results May 2.
Six analysts surveyed by Thomson/First Call varied widely on what the expected Cubic to earn: 6 cents to 41 cents per share. The average of the six estimates was 23 cents per share. Collectively the analysts expected revenue of $349.7 million.
In the same quarter last year, Cubic (NYSE: CUB) reported a net loss of $11 million, or 41 cents per diluted share, on sales of $338.8 million.
In the recently ended quarter, the business reported an $11.1 million loss before income taxes, but experienced a $21.2 income tax benefit, putting it into the black.
The operating loss for the recently ended quarter was $9.1 million, a contrast to the operating income of $23.2 million in the same quarter last year. “Operating results in the second quarter of 2016 were significantly impacted by accounting requirements for business acquisitions, including an $18.5 million charge recognized in connection with the acquisition of GATR Technologies LLC,” the company said in a statement.
Cubic cut its earnings forecast for 2016 to $1.20 to $1.40 per diluted share — previously it was $1.30 to $1.55 per diluted share — citing acquisition costs, foreign exchange headwinds and favorable income tax treatment. With its recent acquisitions of GATR Technologies and TeraLogics, Cubic increased its sales forecast for the whole of 2016, from a range of $1.45 billion to $1.5 billion, to a range of $1.51 billion to $1.56 billion. Unfavorable foreign exchange rates weighed on the sales forecast, Cubic said.
In a statement, company CEO Brad Feldmann said that he expected “a strong second half, particularly in the fourth quarter.”